Elliott-Backed Group Leads Citgo Sale to Compensate Venezuela's Debts

A firm backed by Elliott Investment Management has emerged as the leading bidder for Citgo Petroleum, a significant player in the U.S. oil refining sector. This development comes amid a protracted legal struggle involving billions of dollars owed by the Venezuelan government to foreign companies, including U.S. energy firms. The special master overseeing the sale has recommended that Citgo be sold to Amber Energy, an affiliate of Elliott. Citgo, which operates three major refineries in Illinois, Louisiana, and Texas, represents about 4% of the nation's fuel production capacity. The sale is expected to help satisfy claims from foreign companies seeking compensation for over $21 billion in debts due to asset seizures by the Venezuelan government. The U.S. District Court judge, Leonard P. Stark, has previously ruled that shares in Citgo's U.S.-based parent company could be auctioned to address these claims. A hearing regarding the sale is scheduled for November, with Amber Energy anticipating the deal's closure by mid-next year. Despite the ownership change, operations at the more than 4,000 independently owned Citgo-branded gas stations are not expected to be directly impacted. Amber Energy's CEO, Gregory Goff, has expressed intentions to maintain the Citgo brand while enhancing operational efficiency. This sale is significant not only for the financial implications for Venezuela but also for the future of Citgo as a brand in the U.S. market. The ongoing political and economic turmoil in Venezuela, highlighted by President Nicolás Maduro's controversial re-election, adds further complexity to the situation. The outcome of this sale could have lasting effects on both the Venezuelan economy and the U.S. energy landscape.